The federal government through the Residential Energy Credit program (IRS Form 5695), provides a 30% tax credit for residential solar energy systems that go into operation during the calendar year 2032. This is a “dollar for dollar” tax credit worth 30% of the solar energy system’s cost that eligible homeowners can recover through their tax filings and can often be worth $10,000 or more. The credit is often applied against the cost of a system’s financing and helps to accelerate the break-even time frame, at which point the electricity a system generates is effectively “free”!
Keep In Mind: The home served by the system does not have to be the taxpayer’s principal residence. This is great news for real estate investors and/or for individuals with more than one residence. On leased systems, SunPower® collects this incentive and passes the savings on to the homeowner! Hurry and take advantage of this while it lasts, as this credit is scheduled to completely phase out by 2034.